Monday, March 30, 2015
Horizon Pharma PLC has agreed to purchase Hyperion Therapeutics for $955.7 million in cash, in a move to expand its drug portfolio by adding two treatments for a rare metabolic condition.
The offer of $46 a share is a 7.6% premium over Hyperion’s closing price of $42.74 a share on Friday. The deal is expected to add to earnings immediately and will contribute about $100 million in 2016 to earnings before interest, taxes, depreciation and amortization, or Ebitda, Horizon said.
“The Hyperion acquisition will expand and diversify our product portfolio by adding two complementary orphan disease products, Ravicti and Buphenyl, and leverage as well as expand the existing infrastructure of our orphan disease business,” Horizon Chief Executive Timothy P. Walbert said.
Orphan diseases are rare conditions that haven’t been adopted by the pharmaceutical industry because there is little financial incentive to develop treatment. Ravicti and Buphenyl are treatments for those with urea cycle disorder, which affects about 2,100 people in the U.S. Net sales for the two drugs were $30.8 million and $113.6 million, respectively, in 2014.
The deal brings the number of Horizon’s products to seven from five.
Horizon will pay for the deal in a combination of cash and $900 million in debt commitments.
The deal has been approved by both boards and is expected to close in the second quarter.
Shares of Horizon have been up about 47% this year through Friday’s close.
wsj.com
